Jul 12, 2014 | Covered Call Exit Strategies, Exit Strategies, Option Trading Basics, Options Calculations, Stock Option Strategies
Options calculations will give us an accurate assessment of our covered call writing profits. It’s more meaningful to use percentages rather than dollar amounts when executing these calculations. For example, a $1000.00 profit on a $10,000 investment (10%) is...
Jul 5, 2014 | Investment Basics, Option Trading Basics, Stock Option Strategies
Weekly options (weeklys) are becoming an attractive choice for many covered call writers. These are options that expire every week rather than the more conventional monthly options. Weeklys are listed each week except that no new Weeklys are listed that would expire...
Jun 28, 2014 | Option Trading Basics, Options Calculations, Stock Option Strategies
Options calculations are an integral part of our BCI methodology both in guiding us in making the best investment decisions and also in determining our trading success. To assist in achieving these goals I developed the Ellman Calculator six years ago and with the...
Jun 21, 2014 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
The risk in covered call writing is in the stock purchased not in the option sold. Sound familiar? It’s in all my books and DVD Programs and mentioned in my seminars and webinars. Yet it appears when we look at our brokerage statements that this concept is not...